TREASURY

Container Security

Gordon Brown: Her Majesty's Customs and Excise and the United States Customs Service signed a Declaration of Principles to implement the Container Security Initiative today, 9 December. Detailed guidance on how the Initiative will be implemented and on deployment of US Customs Officers at UK ports will be agreed in the New Year. A copy of the Declaration has been placed in the Library.

DEPUTY PRIME MINISTER

National Non-domestic Rates

Nick Raynsford: On Thursday 5 December 2002 I presented the draft Settlement for 2003–04. Included in the announcement was the amount available of non-domestic rates in England for 2003–04 to be redistributed to local authorities. This statement details the calculation of the Distributable Amount and announces the non-domestic rate poundage (multiplier) for 2003–04.
	The multiplier will be 44.4 pence. The amount of non-domestic rates in England for 2003–04 to be redistributed to local authorities will be #15,600 million.
	The calculations for 2003–04, and the prior-year figures, on which this is based, are set out in the following table.
	
		National non-domestic rates—calculation of Distributable Amount for 2003–04 -- # million
		
			  2000–01 Provisional Outturn 2001–02 Provisional Outturn 2002–03 Provisional Outturn 2003–04 Estimated in- year contribution  
		
		
			 1. Income from local lists 
			 Multiplier (p) 41.6 43.0 43.7 44.4 
			 Gross Yield 16,190 16,955 17,230 17,471 
			   
			 (i) Reliefs 
			 (a) Net Transitional Relief -943 -499 -209 -193 
			 (b) Empty Properties -970 -1,045 -1,054 -1,070 
			 (c) Charitable -539 -582 -600 -609  
			 (d) Rural Shops & Post Offices -2 -5 -6 -6 
			 (e) Discretionary -34 -43 -39 -39 
			 Net Yield after reliefs 13,701 14,781 15,323 15,554 
			   
			 (ii) Collection Costs/reductions to contributions 
			 (a) Cost of collection -85 -84 -84 -84  
			 (b) Losses on collection -116 -93 -134 -140 
			 (c) City of London offset -7 -7 -7 -7  
			 Total contribution in respect of year 13,494 14,598 15,099 15,324 
			   
			 (iii) Repayments/interest payments 
			 Total adjustments -615 -345 -311 -342 
			 Net Local Yield 12,880 14,253 14,788 14,982 
			   
			 2. Income from Central List 
			 Net Central List Yield 868 1,049 1,063 1,081 
			   
			 3. Income from Crown List 
			 Contribution in Aid 
			 Net Crown Yield 9 12 12 12 
			   
			 Total NDR Yield 13,757 15,313 15,862 16,075 
			   
			 4. Exchequer 
			 Total Exchequer Contributions 415 262 41 111 
			   
			 Total NNDR pool payments 
			 (1+2+3+4) 14,172 15,575 15,903 16,186 
			   
			 5. Adjustments 
			 Surplus brought forward 929 -302 137 -586 
			 Combined total 15,101 15,274 16,041 15,600 
			 Distributable Amount 15,402 15,136 16,626 15,600 
			   
			 Surplus Carried Forward -302 137 -586 0 
		
	
	Notes:
	For 2001–02 and 2000–01 the amounts shown are those recorded in the post end-year (NNDR3) returns. For 2002–03 the amounts shown are the provisional outturn for the year based mainly upon authorities' provisional contributions to the non-domestic rating pool. For 2003–04 the estimates are based on:
	1. Item 1: The gross calculated rate yield represents the total value of non-domestic hereditaments on local rating lists times the multiplier.
	2. Item 1(i)(a): The transitional decrease adjustment includes the estimated amount of rates that will not be recouped from local list ratepayers under the transitional arrangements made by regulations under section 58 of the Local Government Finance Act 1988 and the transitional relief scheme, announced by written PQ on 25 November 1999, Official Report, column 770W.
	3. Item 1(i)(b): The empty property relief adjustments include voids and partially occupied hereditaments. The 2003–04 figure includes an allowance for the increase in the gross rate yield.
	4. Item 1(i)(c): Charitable rate relief. The 2003–04 figure includes an allowance for the increase in the gross rate yield.
	5. Item 1(i)(d): Rural Shops and Post Office relief. Figures include mandatory relief for general stores and post offices under the Local Government and Rating Act 1997. Figures for 2001–02 onwards includes mandatory relief for petrol filing stations and public houses under the Non-Domestic Rating (Public Houses and Petrol Filling Stations) (England) Order 2001 (SI 2001/1345) and mandatory relief for new enterprises on former agricultural premises under the Rating (Former Agricultural Premises and Rural Shops) Act 2001. The 2003–04 figure includes an allowance for the increase in the gross rate yield.
	6. Item 1(i)(e): Discretionary relief granted to charities, non-profit making organisations and for other reasons including discretionary relief for village shops and post offices under the Local Government and Rating Act 1997. Figures for 2001–02 onwards include discretionary relief for petrol filing stations and public houses under the Non-Domestic Rating (Public Houses and Petrol Filling Stations) (England) Order 2001 (SI 2001/1345) and discretionary relief for new enterprises on former agricultural premises under the Rating (Former Agricultural Premises and Rural Shops) Act 2001. The 2003–04 figure includes an allowance for the increase in the gross rate yield.
	7. Item 1(ii)(a) and (b): The allowances for the costs and losses incurred by authorities in collecting non-domestic rates from ratepayers.
	8. Item 1(ii)(c): City Offset—the amount which the City of London will not be required to pay into the non-domestic rating pool. It is the amount which will be retained by the City to meet its own expenditure.
	9. Item 1(iii): net adjustment in respect of appeals and other amendments to the rating list affecting liability for previous years rates settled in that year.
	10. Item 2: the rateable value of non-domestic hereditaments on the central rating list times the multiplier, less the net effect of transitional arrangements, and adjusted for appeals and other changes in respect of previous years.
	11. Item 3: Almost all properties included in the crown list in previous years are included in the local list figures at item 1.
	12. Item 4: the contribution from central government to offset the amount of the Secretary of State's estimate of income forgone as a result of transitional arrangements established by regulations under section 58 of the Local Government Finance Act 1988 and the transitional relief scheme, announced by written PQ on 25 November 1999, Official Report, column 770W.

TRADE AND INDUSTRY

Science Budget

Patricia Hewitt: I have pleasure in announcing the allocations of the Science Budget for the period 2003–04 to 2005–06, following the announcement in July this year by my right hon. Friend the Chancellor of the Exchequer of the outcome of the spending review. The spending review reaffirmed this Government's commitment to a healthy and vibrant science and engineering base at the heart of the life of the nation. The Science Budget, already growing at an average of about 7 per cent. in real terms year on year will now accelerate to a growth rate of 10 per cent. real terms year on year.
	Details of the allocations are set out in a document I am publishing today, XScience Budget: 2003–04 to 2005–06". Copies have been placed in the library of the House and are also available on the website of the Office of Science and Technology at www.ost.gov.uk/.
	The allocations which I am announcing today focus on the new resources which are being made available to the Research Councils and other funded bodies for the pursuit of science, engineering and technology research. As a result of these allocations, the Research Councils will receive significant new funding to increase the volume of top-quality research. I have also allocated funding to enable the Councils to take forward specific new projects in the following key areas of research:
	Stem cells—#40 million over two years
	Sustainable Energy Economy—#28 million over two years
	Rural Economy and Land Use—#20 million over two years
	In addition to this, I have provided the Councils with contributions to enable them to fund programmes in other key areas such as brain science, animal infectious diseases and gravity waves and planetary exploration.
	The Councils will also continue the cross-Council programmes in genomics, e-science and basic technology begun following the previous spending review. The Genomics programme is being expanded to include research into the important area of proteomics. The Basic Technology programme will also be expanded in response to the very high level of demand generated in the first year.
	The Research Councils will receive funds to allow them to implement some of the recommendations of SET for Success, the review of science, engineering and technology skills carried out by Sir Gareth Roberts. These are:
	An increase in the minimum Research Council PhD stipend to #12,000 by 2005–06
	The provision of better training in transferable skills for PhD students and postdoctoral researchers supported by the Research Councils.
	The implementation of other aspects of the Roberts review recommendations which were funded in the spending review will be announced next year.
	The Science Budget settlement included funding for the top-priority large facilities projects identified on the large facilities road map, including the Diamond synchrotron. Funding for these projects will be released as each one reaches the necessary state of preparation.
	I am allocating limited capital funding to those Councils which operate institutes, centres and surveys of their own to enable them to address the most serious capital investment backlogs as soon as possible. I have also indicated that I will allocate further funds for this purpose in due course on receipt of robust business plans which indicate how the funding of institutes will be put on to a long-term sustainable footing.
	A key feature of the allocations booklet which I have referred to above is the inclusion of a suite of objectives for the management of the Science Budget. These objectives support my Department's Public service Agreement target for science, exploitation and innovation, namely:
	To improve the relative international performance of the UK's science and engineering base, the exploitation of science and the overall innovation performance of the UK.
	I am grateful to the Director General of Research Councils for his advice on these allocations and to the members of the RCUK Strategy Group for their part in the successful outcome of the allocations process.
	The Government's commitment to science is unwavering. We believe that excellent science delivers the advances we will need as a nation if we are to improve productivity, improve the quality of life and so deliver greater prosperity for all.